R&D Tax Credits
Are you a UK-based business pushing your sector’s boundaries? Your company could be undertaking work that allows you to claim tax relief. At BAND, we specialise in helping our clients navigate the complex and ever-changing landscape of Research & Development Tax Credits and manage the process on your behalf. Our experienced R&D Tax Relief consultants work closely with HMRC and the wider R&D community to keep clients updated on legislation changes.
Understanding Types of R&D Tax Relief:
There are three types of R&D tax relief:
R&D Tax Credit
For loss-making SMEs or large companies claiming R&D expenditure credits (RDEC).
Income Tax Refund
For profit-making SMEs looking to reclaim some or all of their corporation tax.
R&D Tax Reducer
For profit-making SMEs aiming to reduce tax costs.
Eligibility Criteria for R&D Tax Credits
Navigating the complex language of R&D tax credit legislation and HMRC guidance can be overwhelming, especially for companies new to the scheme. Our role as advisors is to decode this for you. We uncover potential qualifying R&D activities by understanding the innovative solutions your company develops for challenges that don’t have immediate answers.
Luckily, we have your back!
Our team, composed of technical experts, chartered tax advisors, accountants and former HMRC inspectors, excels at identifying unnoticed eligible R&D efforts. The broad nature of the legislation aims to foster innovation across various science and technology fields. It’s important to note that activities in the arts, humanities and social sciences, including economics, don’t qualify for R&D tax relief under this scheme.
Claiming R&D Tax Credits
It’s advisable to partner with experienced advisors familiar with the legislation, who can assess the specifics of your work and determine your eligibility. The process involves several steps, including creating a technical report outlining your qualifying activities. Additionally, you’ll need to prepare a financial report that documents your incurred costs, known as qualifying expenditures, to complete your claim.
Our Process to Support R&D Tax Relief Claims
Together, we explore, scope, assess & plan.
Together, we gather the technical & financial information available.
BAND creates HMRC-ready technical (T) & financial (F) reports.
BAND shares findings and T&F reports for review and approval.
BAND files a R&D tax relief (credit) claim with your Corporation Tax return (CT600).
BAND monitors and stays in touch with HMRC on your behalf.
You receive the benefit for your investment in innovation, which will take the form of a reduction in your corporation tax bill, or a cash benefit paid into your bank account.
FAQs About R&D Tax Credits:
Why is it essential to work with an experienced R&D Tax relief advisor?
a. To maximise your claim. BAND has in-depth knowledge of R&D tax relief eligibility criteria and complexities, enabling us to identify potentially claimable activities you might miss.
b. To navigate complex regulations. R&D tax relief schemes have intricate rules andguidance.
c. To reduce risk and minimise errors. Submitting an inaccurate or incomplete claim can lead to enquiries, investigations and penalties.
d. To save time and resources. Claim preparation can be time-consuming. BAND handles the entire process, gathering information, drafting reports and communicating with HMRC, freeing you to focus on your core business.
e. To harness industry expertise. BAND’s technical consultants specialise in specific sectors, providing additional insights relevant to your field. We can understand your R&D activities better and identify claimable expenses you might overlook.
f. To ensure peace of mind. Knowing you have a dedicated expert team managing your claim can provide invaluable peace of mind, especially considering the financial implications and potential complexities involved.
What is a ‘competent professional’? Who are the true experts in your business, and why is this important?
The ‘competent professionals’ within a business seeking to claim R&D Tax Relief are considered fundamental to a claim. One would expect such a person to:
i. Be knowledgeable about the relevant scientific and technological principles involved.
ii. Be aware of the current state of knowledge.
iii. Possess accumulated experience and be recognised as having a successful track record (this may include formal qualifications, apprenticeships, tenure, etc).
iv. Competent professionals in a particular field may differ in opinion. Where the view taken is legitimate and has been reached by a competent professional properly exercising their expert judgement, it should normally be accepted.
How should companies record time to capture R&D activity?
HMRC looks for contemporaneous records as evidence that the work has been undertaken. Such records can take the form of emails, invoices, images, logbooks, daybooks and diaries as long as they were written at the time the development was happening. Good quality records can be developed over time.
Do you want to claim R&D Tax Relief for your business?
Don’t let valuable R&D tax relief slip through the cracks. Contact BAND today to schedule your consultation and start maximising your innovation returns. Let us help you unlock the full potential of your R&D efforts.
Let’s Talk
Tel: 020 8138 5560
Email: hello@weareband.co.uk
111 Charterhouse Street,
London, EC1M 6AW
